Ola in talks with luxury carmakers Audi, Mercedes and BMW for subscription-based self-drive services

Ola has been running a small-scale pilot of the self-drive service in Bengaluru currently, and is expected to launch the offering in the next few weeks through Ola Fleet Technologies

Press Trust of India April 22, 2019 11:51:10 IST
Ola in talks with luxury carmakers Audi, Mercedes and BMW for subscription-based self-drive services
  • The company is also believed to have earmarked an investment of up to $500 million (including debt) for the self-drive service

  • Ola is in talks with carmakers to bring to India a model where users can get access to luxury cars by paying a subscription fee

  • Ola already allows customers to book rides in luxury cars through its 'Lux' offering

New Delhi: Ride-hailing platform Ola is in discussions with luxury carmakers, including Audi, Mercedes and BMW, to launch a subscription-based service under its self-drive offering, according to sources.

Ola has been running a small-scale pilot of the self-drive service in Bengaluru currently, and is expected to launch the offering in the next few weeks through Ola Fleet Technologies.

The company is also believed to have earmarked an investment of up to $500 million (including debt) for the self-drive service.

According to sources privy to the development, the company is in talks with carmakers like Audi, Mercedes and BMW to bring to India a model where users can get access to luxury cars by paying a subscription fee.

Email queries sent to Ola, Audi, Mercedes and BMW did not elicit any response.

Ola in talks with luxury carmakers Audi Mercedes and BMW for subscriptionbased selfdrive services

Representational image. Reuters.

One of the persons said the format is available in developed markets like the US, but given the high cost of luxury vehicles in India, a direct-to-customer model may not be not feasible in the country.

The person added that Ola sees a lot of potential in bringing this model to India given its scale of operations across multiple categories and cities.

Ola already allows customers to book rides in luxury cars through its 'Lux' offering. In October 2016, the Bengaluru-based company had partnered with BMW for expanding the category.

The company, which competes with the US-based Uber in India and international markets like Australia, has been aggressively ramping up its rides business as well as food delivery operations (through Foodpanda).

It had recently announced that Hyundai and Kia are investing $300 million in the company.

Ola, which counts names like SoftBank Group and China's Tencent Holdings among its investors, had received Rs 650 crore funding from Flipkart co-founder Sachin Bansal in February this year.

Ola's electric mobility arm Ola Electric Mobility has also raised Rs 400 crore from Tiger Global, Matrix India and others.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Formula 1 2020: Mercedes working hard to fix 'complex problem' in gearbox before next race
Sports

Formula 1 2020: Mercedes working hard to fix 'complex problem' in gearbox before next race

Valtteri Bottas won the race at the Red Bull Ring for Mercedes but he and his team mate Lewis Hamilton, the six-times Formula 1 world champion, were told to avoid the kerbs due to the risk of vibration damage.

Formula 1 2020: Red Bull lose appeal against Mercedes' Dual Assistant Steering system
Sports

Formula 1 2020: Red Bull lose appeal against Mercedes' Dual Assistant Steering system

Other teams were caught cold by the innovation, with Red Bull claiming in their protest that Mercedes' DAS is both an aerodynamic and a suspension device.

Formula 1: McLaren team principal Andreas Seidl not to protest against Racing Point’s ‘Pink Mercedes’
Sports

Formula 1: McLaren team principal Andreas Seidl not to protest against Racing Point’s ‘Pink Mercedes’

Racing Point's pink liveried RP20 car gained nickname 'Pink Mercedes' from the moment the covers came off because of the visual similarities to last year’s title-winning Mercedes, raising some questions about its legality.